Planning and due diligence

Key message

It is good practice for agencies to start planning as early as possible.

As soon as it becomes clear that a MoG change will occur, affected agencies are expected to:

consider the appointment of an independent third party to facilitate the process

establish a cross-agency steering committee to oversee implementation

prepare for an immediate and thorough due diligence exercise, and

develop a communications strategy to keep staff informed

The extent of these actions will depend on the size and complexity of the MoG change.

1. Agencies are expected to implement change in a way that is consistent with the principles outlined in the Executive Summary.

Independent facilitator

2. An independent facilitator should be appointed by affected agencies to manage the MoG process in circumstances where

the MoG change is sensitive or complex

the MoG change involves the closure of an entity

the affected entities are having difficulty in resolving issues

3. An independent facilitator must be appointed in
circumstances where critical milestones are not being met. Once a MoG change is
announced, critical
milestones will be established.

4. The independent facilitator's role is to manage the process of information exchange between the losing and gaining agencies. This can involve:

managing a detailed examination of all aspects of the function being transferred, including assets and liabilities and statutory, contractual and other arrangements, to identify any issues which may need to be addressed – see also Planning and Due Diligence.

assisting the losing and gaining agencies to resolve outstanding issues

5. Finance can provide affected agencies with a list of independent facilitators.

Steering Committee

6. Good practice supports the creation of a Steering Committee to oversee implementation. Such a Committee would operate with:

representatives from all affected agencies—managers from corporate or enabling services as well as programmes

clear lines of responsibilities for individuals and groups

governance mechanisms and protocols for recording key decisions

regular reporting to the executives of all affected agencies.

7. The Steering Committee may be assisted by smaller working groups.

Due diligence

8. Losing agencies are as soon as possible to provide gaining agencies with the following information:

Information gathered from due diligence checks

Timely and accurate information

9. Due diligence requires a detailed examination of all aspects of the function being transferred. Issues to be addressed include:

the statutory basis of programmes and functions

The Australian Government Organisations Register (AGOR), to assist in identifying secondary and related bodies (committees, advisory and expert panels, boards, statutory por branded functions etc. ) that may be required to be moved

funding agreements, partnerships, joint ventures, taxation issues

delegations and authorities

assets and liabilities, intellectual property

records and information management

contractual arrangements for property, equipment and goods and services

Dispute process

10. Finance will mediate if agencies are unable to reach agreement on financial matters within the established timeframe. The mediation process involves:

The parties providing Finance with information supporting their respective positions.

The parties meeting jointly with Finance to discuss outstanding issues.

Finance working with the parties to reach agreement–after conducting an analysis of the parties' information and following discussions Finance may support one of the positions or provide a third position agreement.

11. The APSC will mediate on staffing matters if agreement cannot be reached within established timeframes.

Communication strategy

12. Section 47 of the Work Health and Safety Act 2011 requires that a business consults— so far as is reasonably practicable— with workers who are (or are likely to be) directly affected by health and safety matters.

13. During a MoG change, agencies are encouraged to conduct ongoing communication and consultation with workers about their transition to new work arrangements. It is important to communicate with affected staff early in the process to explain:

why–the reasons and objectives for change

what–the impact of change

what next–the timetable for specific activity relating to the change.

14. The Steering Committee may decide to establish a Communications Manager in each affected agency.

Asset ID: #80685

About the Commission

The Australian Public Service Commission (APSC) is a central agency within the Prime Minister and Cabinet portfolio. The Commission supports two statutory office holders: the Australian Public Service Commissioner—who is also agency head—and the Merit Protection Commissioner. Their functions are set out in sections 41(1) and 50(1), respectively, of the Public Service Act 1999.